Florida Realtors® statewide continued to report positive signs in their local housing markets, with an increase in existing home and condominium sales during May 2008 compared to the previous month.

• 12,175 existing single-family homes sold in May, up 8.7% from the previous month when 11,200 single family homes were sold.  May 2007 saw sales of 12,882 which was 5% higher than May 2008.

• 4,018 existing condo sales statewide sold in May, up 3% from the previous month when  3,900 condos were sold.  May 2007 saw sales of 4,,458 which was 10% higher than May 2008.

• Median price for existing single-family homes statewide in May was $203,300, an increase of 2.2%  from April’s median price of $198,900.   The median price for May 2007 was $239,000 which was 15% more than May 2008.

• Median price of an existing condo statewide in May $181,800, an increase of 1.5% from April’s figure of $179,200.   The median price for May 2007 was $210,200 which was 14% more than May 2008.

Whilst the median price of existing single family homes has decreased over the past year, over the past 5 years, prices have increased approximately 34.5% from $151,200 to the current median price of $203,300.

In the latest National Association of Realtors® (NAR) housing outlook, Chief Economist Lawrence Yun noted that pending sales contracts have increased markedly in areas experiencing significant price drops. “Bargain hunters have entered the market en-masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants,” he said. “Sharp price reductions are leading to a quicker discovery of price equilibrium points.” Pending sales are based on contracts signed but not yet closed.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.04 percent, down from the average rate of 6.26 percent in May 2007, according to Freddie Mac. The Florida Association of Realtors’ (FAR) sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Once again, several of Florida’s metropolitan statistical areas (MSAs) reported gains in existing home sales for the month; a few MSAs also showed an uptick in condo sales. Realtors around the state reported an increase in buyer interest in their markets, noting more home showings, telephone calls, and other business activity, as well as higher pending home sales in many areas.


Source:  NAR/FAR